United Airlines once faced a $180 million loss. All they did was refuse to pay for a broken guitar

One man brought a big airline nearly to its knees by going beyond the traditional customer service counter. Back in 2009, when United Airlines mishandled Canadian singer Dave Carroll's luggage and broke his guitar, the baggage handlers probably didn't think it would cost millions. Carroll, who got fed up with the poor customer service of the airline, decided to make a diss track with his band, triggering a PR disaster for the airline. As his music video went viral, it has over 23 million views, the airline's stock plummetted by over $180 million, as per Times Online. 

Poor communication and lack of empathy

It all started in 2008, when he was flying from Halifax, Nova Scotia to Omaha, Nebraska for a show with his band “Sons of Maxwell.” They boarded a connecting flight which had a stop in Chicago. In conversation with Marketplace, Carroll shared that while deplaning at the airport, he heard a woman go "Oh my God, they’re (baggage handlers) throwing guitars outside." 

In his music video, he explained the same story saying that when he brought it up with the airline workers in Chicago, they brushed him off. He told the publication that they even said this is why he had to sign a waiver. When the band finally got to Omaha, his $3,500 Taylor guitar had a large hole in it and was badly damaged. Since it was late in the night, he couldn't find anyone at the service desk either.

Next, he called the 1-800 number of customer service, starting a nine-month-long and frustrating journey.  Carroll said he had bounced around and hung up several times ultimately landing in the email of an executive named Ms Irlweg. By this time, he had already got his guitar repaired for $1,200. 

After exchanging dozens of emails, Ms Irlweg, who is named in the diss track, told him that his request for vouchers worth $1,200 could not be fulfilled as he did not file a claim within 24 hours. Carroll shared that he wrote in response that if he were a lawyer he would sue the company. But since he was a musician, he only had music at his disposal. 

"United Breaks Guitars"

Carroll then gathered all his resources and friends to make three diss tracks against the airline, thinking he may get a million hits on YouTube on all of them combined.  He knew that it would resonate as almost everyone in the industry had faced a similar problem. 

Thus, with a tiny budget, they shot the first music video titled "United Breaks Guitars". Before posting the video on YouTube, he messaged all of his Facebook friends to watch the video, once it went live.

While Carroll wasn't expecting much, the video went viral and amassed thousands of views within hours and a million in four days. As it breached the 10 million mark, Carroll had already grabbed widespread media attention.  

Following a wave of international press coverage and nearly 10,000 emails from people across the globe, “United Breaks Guitars” became the number-one music video in the world for a month. The attention even got Carroll endorsement deals from guitar case companies and a call from Bob Taylor from Taylor Guitars.

While Carroll became a sensation, United Airlines faced a PR disaster. The Times of London reported that the incident had damaged the airline's reputation causing a 10% drop or a $180 million loss in the stock market. Quite obviously, United reached out to Carroll and offered him the $1,200 vouchers plus $1,200 cash for his troubles. However, Carroll had gained much more with his newfound fame.